Apple’s Long-Rumored TV Ambitions on Hold Again?

According to sources in the TV supply chain, it appears that Apple’s long-rumored TV plans, which were far from concrete anyway, have been put on hold again, possibly to be replaced by a rollout of wearable devices. Although many financial and industry analysts have been speculating about Apple’s entrance into the TV business via an actual TV (instead of the Apple TV “hobby” set-top-box) for years, during the last year the rumor-mill has shifted into high gear about a 2014 introduction. Indeed, our own information from TV supply chain sources pointed to the fact that Apple appeared to be lining up resources for a product introduction in the second half of 2014, likely with 2-3 large screen sizes and 4K resolution.

For Apple, selling hardware is partly a way to sell more software and content. If the iPod and iTunes system had never been successfully leveraged as a way to drive customers to buy songs and albums, it likely would never have been the massive success for Apple that it has become. Similarly, iPhones and iPads drive both content and app purchases, which deliver very high margins for Apple. Granted, these hardware devices also generate healthy profits for Apple, but only because they are sold in the tens of millions of units, and are replaced and upgraded relatively frequently.

For Apple to have a successful television product for the living room, it needs to achieve three goals:

Offer a unique point of differentiation to capture market share from leading TV manufacturers such as Samsung and Vizio, while at the same time being able to sell the products for a high enough price to deliver typically high Apple margins.

The last point is particularly difficult to achieve. According to our Global TV Replacement Study, the average TV replacement cycle is 7-8 years, as opposed to replacement cycle purchases for mobile devices Apple currently sells, which is 2-3 years. In addition, consumers are likely to only purchase one Apple TV per household, as opposed to multiple phones or tablets. Even laptop PCs have a much shorter replacement cycle than TVs. In the end, Apple would have a difficult time keeping products updated with the latest hardware and software, unless it took a modular approach to upgrading components, such as what Samsung has done with their Evolution Kit for TVs.

To offer truly unique product differentiation that would allow Apple to capture market share from existing smart TV brands, they would need to either deliver some exclusive source of content that the other brands cannot, such as a la carte pay-TV channels, or proprietary content not available on other devices. Neither of these is easy to achieve, and our sources indicate this is one of the principle reasons for the delay in the project. Consumers already access services like Netflix, Hulu, YouTube and more on a plethora of cheap devices that can be connected to their existing TV, such as the Apple TV and Roku media players, and more recently Google’s Chromecast. Indeed, the existing Apple TV box may be an impediment to Apple’s success with a smart TV product, which as a category, is not growing in the US as many had hoped for. Our most recent smart TV forecast is that they will only account for about a quarter of TV shipments in 2013, and grow very slowly from there, with the focus on low-premium models.

For the current smart TV brands, this will be a big relief. While Apple may not have sold very many units, it would have had significant impact on the upper-tier product ranges from most of the top brands, which is the primary source of what meager profits they can earn in the TV category.

[...] and delaying a true Apple TV launch during 2014. That’s according to analyst Paul Gagnon of DisplaySearch who believes Apple was positioned to debut a true iTV in the latter half of next year, but has put [...]

[...] and delaying a true Apple TV launch during 2014. That’s according to analyst Paul Gagnon of DisplaySearch who believes Apple was positioned to debut a true iTV in the latter half of next year, but has put [...]

[...] the fact that it was on the horizon. Well, it probably still is but according to an Paul Gagnon an analyst, Apple have decided to put their focus and effort into the battle of wearable technology with a [...]

[...] scarce over the past year as interest in a potential smart watch has gained steam. According to a report from NPD DisplaySearch, the rumor trends are indeed a reflection of what is happening at Apple, with the company [...]

[...] running on board. (adsbygoogle=window.adsbygoogle||[]).push({});The report comes from an analyst of DisplaySearch who believes that iTV project is delayed for another year, and main focus is now on wristwatch [...]

[...] scarce over the past year as interest in a potential smart watch has gained steam. According to a report from NPD DisplaySearch, the rumor trends are indeed a reflection of what is happening at Apple, with the company [...]

[...] scarce over the past year as interest in a potential smart watch has gained steam. According to a report from NPD DisplaySearch, the rumor trends are indeed a reflection of what is happening at Apple, with the company [...]

[...] NPD DisplaySearch is reporting through its anonymous sources inside the TV supply chain that Apple’s rumoured HD television plans have been put on hold once again, and are likely to be replaced by a rollout of wearable devices, such as an iWatch. Earlier rumours have suggested that Apple is readying a TV product for release in second half of 2014, likely with 2-3 large screen sizes and 4K resolution. [...]

[...] today revealed that Apple’s HDTV plans are now indefinitely on hold. In a DisplaySearch blog post Gagnon quoted unnamed “sources in the TV supply chain” as stating the TV ambitions may have [...]

[...] scarce over the past year as interest in a potential smart watch has gained steam. According to a report from NPD DisplaySearch, the rumor trends are indeed a reflection of what is happening at Apple, with the company [...]

http://www.redmondpie.com/apples-tv-set-plans-on-hold-as-company-pursues-wearable-tech-for-release-next-year-report/ Apple’s TV Set Plans ‘On Hold’ As Company Pursues Wearable Tech For Release Next Year [Report] | Redmond Pie

[...] status of Bigfoot and UFOs in the technology media world, has again been reportedly put on hold. DisplaySearch’s supply chain sources claim that Apple has cooled to the idea of releasing its own television set in 2014 and will [...]

http://stateofthemarkets.com/report/31823/ Rumor: Apple’s First TV Delayed Again, Lack Of Content Blamed | State of the Markets

[...] to DisplaySearch’s North American TV Research Director, Paul Gagnon, the Mac maker’s TV has been postponed [...]

http://www.mobile361.com/2013/11/wearable-devices-not-the-itv-are-in-apples-immediate-future/ Wearable Devices, Not The ‘iTV’ Are In Apple’s Immediate Future | MOBILE361

[...] supply chain sources, NPD DisplaySearchhas announced that Apple wont be launching a television set next year, as once planned. Instead, [...]

[...] and delaying a true Apple TV launch during 2014. That’s according to analyst Paul Gagnon of DisplaySearch who believes Apple was positioned to debut a true iTV in the latter half of next year, but has put [...]

[...] been put on hold yet again. According to sources "in the TV supply chain" speaking with Display Search, Apple pressed pause once more on its alleged television product. The reason for the further delay [...]

[...] and delaying a true Apple TV launch during 2014. That’s according to analyst Paul Gagnon of DisplaySearch who believes Apple was positioned to debut a true iTV in the latter half of next year, but has [...]

[...] today revealed that Apple’s HDTV plans are now indefinitely on hold. In a DisplaySearch blog post Gagnon quoted unnamed “sources in the TV supply chain” as stating the TV ambitions may have [...]

[...] ride that is the Apple iTV rumor mill took another plunge into a tunnel today. A report from Analyst Blog citing unnamed sources says the expected 4K masterpiece from the Cupertino Kids is on hold. Again. [...]

http://knutell.com/2013/11/11/apples-tv-plans-reportedly-on-hold-again-as-wearables-take-priority/ Apple's TV Plans Reportedly On Hold Again as Wearables Take Priority

[...] scarce over the past year as interest in a potential smart watch has gained steam. According to a report from NPD DisplaySearch, the rumor trends are …read [...]

[...] scarce over the past year as interest in a potential smart watch has gained steam. According to a report from NPD DisplaySearch, the rumor trends are indeed a reflection of what is happening at Apple, with the company [...]

[...] scarce over the past year as interest in a potential smart watch has gained steam. According to a report from NPD DisplaySearch, the rumor trends are indeed a reflection of what is happening at Apple, with the company [...]

The situation will change when the TV environment changes through depressed DVD sales, continued erosion of cable TV subscribers, improved standalone sales through iTunes, alternate subscription services like Netflix, etc. At that point modernization of TV may happen. Then Apple can disrupt, that is still years away.

http://www.acs-company.com/apples-tv-plans-reportedly-on-hold-again-as-wearables-take-priority/ Apple’s TV Plans Reportedly On Hold Again as Wearables Take Priority

[...] scarce over the past year as interest in a potential smart watch has gained steam. According to a report from NPD DisplaySearch, the rumor trends are indeed a reflection of what is happening at Apple, with the company [...]

[...] anyway, have been put on hold again, possibly to be replaced by a rollout of wearable devices,” according to a report from NPD DisplaySearch. “Although many financial and industry analysts have been speculating about Apple’s entrance [...]

[...] Anyone hoping for Apple to launch much-rumored HDTV next year should stop thinking about it, as the cupertino tech giant has reportedly delayed its plans to bring the Apple TV in 2014, likely pushing a possible introduction into 2015 at the earliest, reports NPD DisplaySearch analyst Paul Gagnon. [...]

[...] According to analyst Paul Gagnon, in order for Apple to successfully launch a TV product, it needs to achieve three goals: [...]

Andy Hunn

So why should Apple even consider this business. Consumers have gotten
comfortable with the box behind the TV set and seem less likely to
upgrade their TV sets, even for an Apple television. They should keep improving their Apple TV box. http://lnkd.in/dEV-dZb

http://mukeshbalani.wordpress.com/2013/11/12/here-are-the-two-big-reasons-apple-will-not-launch-a-tv-in-2014-aapl/ Here Are The Two Big Reasons Apple Will Not Launch A TV In 2014 (AAPL) | mukeshbalani.com

[...] Group analyst Paul Gagnon says the development of an Apple TV is on hold again. A TV product from Apple had previously been expected in 2014. But Gagnon’s supply [...]

[...] Group analyst Paul Gagnon says the development of an Apple TV is on hold again. A TV product from Apple had previously been expected in 2014. But Gagnon’s supply [...]

http://servaasschrama.com/2013/11/12/here-are-the-two-big-reasons-apple-will-not-launch-a-tv-in-2014-aapl/ Here Are The Two Big Reasons Apple Will Not Launch A TV In 2014 (AAPL) | Lord of the Net

[...] Group analyst Paul Gagnon says the development of an Apple TV is on hold again. A TV product from Apple had previously been expected in 2014. But Gagnon’s supply [...]

http://thisisjahsmith.com/2013/11/12/here-are-the-two-big-reasons-apple-will-not-launch-a-tv-in-2014-aapl/ Here Are The Two Big Reasons Apple Will Not Launch A TV In 2014 (AAPL) | This Is Jah Smith DOT com

[...] Group analyst Paul Gagnon says the development of an Apple TV is on hold again. A TV product from Apple had previously been expected in 2014. But Gagnon’s supply [...]

http://gadgetynews.com/apple-iwatch-still-on-the-cards-for-2014-apple-hdtv-not-so-much/ Apple iWatch still on the cards for 2014 – Apple HDTV not so much

[...] were planning on seeing the Apple iWatch and the new Apple HDTV to make an appearance in 2014 but news has landed here at GadgetyNews that Apple may have put its plans for a new Apple HDTV on [...]

http://research.gigaom.com/2013/11/apples-non-existent-tv-on-hold-again/ Apple’s non-existent TV on hold again — Gigaom Research

[...] According to “sources” in the supply chain, Apple has put a TV on hold for a wearables launch in the coming year. [...]

[...] to supply chain sources cited by the DisplaySearch blog, Apple have decide to postpone the ‘iTV’ beyond its rumoured 2014 release as consumers [...]

http://www.theiphonenews.com/apples-tv-plans-reportedly-on-hold-again-as-wearables-take-priority/ When’s the next Iphone out?

[...] scarce over the past year as interest in a potential smart watch has gained steam. According to a report from NPD DisplaySearch, the rumor trends are indeed a reflection of what is happening at Apple, with the company [...]

[...] today revealed that Apple’s HDTV plans are now indefinitely on hold. In a DisplaySearch blog post Gagnon quoted unnamed “sources in the TV supply chain” as stating the TV ambitions may have [...]

[...] Rumors about the iTV have been around for quite a long time. Apple is yet to confirm though if it has any intentions of breaking into the smart TV market with a full fledged HDTV set of its own. Many analysts are of the view that the iTV might be launched in 2014, the flames were stoked by Apple CEO Tim Cook a few months back when he said that the company plans on breaking into new product categories next year. However if a new report from DisplaySearch is to be believed, the iTV might have been delayed beyond 2014. There are already a lot of established players in the smart TV market, so Apple’s offering will have to differentiate itself from the rest. In order to do that, Apple would need to source exclusive content that’s not available to the others or it would need to offer proprietary content only to its iTV customers. This is certainly not an easy task and if the content creators, such as the major networks, don’t see eye to eye with Apple, the company’s TV will definitely not be off to a good start. The report claims that Apple will shift its focus from the iTV next year and focus a lot more on wearable devices. Does this mean that Apple will finally release the much rumored iWatch in 2014? Time will tell. Source: DisplaySearch [...]

http://partnersinsublime.com/2013/11/13/apples-tv-plans-reportedly-on-hold-again-as-wearables-take-priority/ Partners In Sublime Apple's TV Plans Reportedly On Hold Again as Wearables Take Priority – Partners In Sublime

[...] scarce over the past year as interest in a potential smart watch has gained steam. According to a report from NPD DisplaySearch, the rumor trends are indeed a reflection of what is happening at Apple, with the company [...]

[...] until next year as they struggle to secure content deals. The news comes from NPD DisplaySearch who say that the TV will not see the light of day until 2015, that’s according to sources in the [...]

[...] scarce over the past year as interest in a potential smart watch has gained steam. According to a report from NPD DisplaySearch, the rumor trends are indeed a reflection of what is happening at Apple, with the company [...]

[...] until next year as they struggle to secure content deals. The news comes from NPD DisplaySearch who say that the TV will not see the light of day until 2015, that’s according to sources in the supply [...]

http://wallstcheatsheet.com/stocks/is-apple-putting-the-brakes-on-the-itv.html/ Is Apple Putting the Brakes on the iTV? | Wall St. Cheat Sheet

[...] (NASDAQ:AAPL) long-rumored television product be held up by a lack of content? According to the unnamed supply chain sources cited by NPD Group’s DisplaySearch research firm, Apple is developing multiple sizes of a 4K [...]

http://news.doddleme.com/equipment/has-apple-scapped-the-itv/ Has Apple Scapped the iTV?

[...] news comes from a website called Display Search, which keeps track of supply chain orders in an effort to determine what Apple and other companies [...]

[...] hold. Paul Gagnon, a display analyst with DisplaySearch, reports that Apple’s TV ambitions have been put on hold or replaced by efforts in the wearables space. Gagnon’s supply chain sources had previously indicated a late [...]

[...] hold. Paul Gagnon, a display analyst with DisplaySearch, reports that Apple’s TV ambitions have been put on hold or replaced by efforts in the wearables space. Gagnon’s supply chain sources had previously indicated a late [...]

[...] Chatter from the TV supply chain about the vendor’s plans for a smart TV (and not a set-top box), while never reaching a full-on roar, lately has pointed to a possible lineup of two or three large screens at 4K resolution, wrote Paul Gagnon, DisplaySearch North American TV research director, in a blog post. [...]

[...] on an Apple-made smart television set — which research firm DisplaySearch said last week was on hold — PrimeSense’s next-generation SoC and supporting technology, dubbed [...]

Peter Gigante

Why doesn’t Apple form a JV with Amazon – the newly created company would use Apple TVs and Amazon Prime together, and be flush with start-up cash contributed by both parent companies to ensure they get all the content they need to dominate the niche. As a seperate JV it would be focused.

[...] Apple’s smart TV product launch has been reportedly delayed due to content deal issues. We should not expect an Apple smart TV until the second half of 2014 or later.PrimeSense is not Apple’s only major [...]

[...] Apple’s smart TV product launch has been reportedly delayed due to content deal issues. We should not expect an Apple smart TV until the second half of 2014 or [...]

jfjacobs

Because they are major competitors.

jfjacobs

As Paul notes, the key is content. And, a la carte is coming to the TV market. Maybe not so much in the USA, but a few countries have embraced it. This will impact the monopolistic behavior of the satellite, cable and FiOS providers.

Can you send me some of the stuff you are smoking , must be good shit!~

Paul Turner

Hey dude , can you use the other brain cell – dumbass

Paul Turner

PEOPLE!!!! THERE IS GOING TO BE NO APPLE TV,
PEOPLE!!!! THERE IS GOING TO BE NO APPLE TV
PEOPLE!!!! THERE IS GOING TO BE NO APPLE TV
PEOPLE!!!! THERE IS GOING TO BE NO APPLE TV

WAKE UP
I already have one
I have two , every time I need a new screen , which is every 10 years all I have to do is connect the apple TV box to it with an HDMI cable
LETS STOP READING THIS REPETITIVE LINK BAIT CRAP

[...] of the endless rumors about Apple’s plans to launch their own TV set. This project seems to be on hold due to content deal challenges, as well as lack of confidence in the value of releasing such a [...]

[...] of the endless rumors about Apple’s plans to launch their own TV set. This project seems to be on hold due to content deal challenges, as well as lack of confidence in the value of releasing such a [...]